QUALCOMM INC/DE
For the period ended Jun 29, 2025. Filed Jul 30, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 29, 2025 · Filed Jul 30, 2025
QCOM$165.41+5.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-30; filed 2025-04-30.
0000804328-25-000031
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-29; filed 2025-07-30.
0000804328-25-000045
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 98 previous paragraphs and 85 current paragraphs.
33 unchanged; 38 reworded; 12 added; 17 removed; 10 previous and 2 current paragraphs rearranged.
Tables are not compared: 12 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (12)
Current report
Third Quarter Fiscal 2025 Overview
Current report
Gross margin percentage remained approximately flat in the third quarter of fiscal 2025.
Current report
Net gains on marketable securities in the third quarter and first nine months of fiscal 2025 was primarily driven by the initial public offerings of certain QSI equity investments.
Current report
On July 4, 2025, tax reform legislation included in the One Big Beautiful Bill Act (OBBB) was enacted in the United States. The impact of the OBBB is excluded from our estimated annual effective tax rate and provision for income taxes for the third quarter of fiscal 2025 as it is a nonrecognized subsequent event. The OBBB includes significant corporate tax reforms, including the permanent reinstatement of deducting domestic research and development expenditures as incurred beginning in fiscal 2026 (under prior law such expenditures were capitalized and amortized over five years). We expect this change will have a favorable effect on our cash flows from operations due to significantly lower cash tax payments.
Current report
However, we expect it will adversely affect our total provision for income taxes and results of operations, as these expenditures will no longer result in a deferred tax asset that is established at the statutory rate of 21% rather than the current effective tax rate of 13% after considering the FDII deduction. The legislation also modifies international tax provisions, including changes to the FDII regime. Specifically, it renames FDII as Foreign-Derived Deduction Eligible Income (FDDEI), maintains the current FDDEI effective tax rate of 13% through fiscal 2026 and adjusts the FDDEI effective tax rate to a permanent 14% rate in fiscal 2027 (compared to 16% under prior law).
Current report
While we continue to evaluate the impact of these tax law changes, we may be subject to the corporate alternative minimum tax of 15% beginning in fiscal 2026, and we are assessing our ability to realize our existing deferred tax assets. As such, our future provision for income taxes and results of operations may be adversely affected (potentially materially).
Current report
The increase in QCT revenues in the first nine months of fiscal 2025 was primarily due to:
Current report
QCT EBT as a percentage of revenues increased in the first nine months of fiscal 2025 primarily due to higher revenues.
Current report
QTL EBT as a percentage of revenues increased in the third quarter and first nine months of fiscal 2025 primarily due to higher revenues.
Current report
QSI EBT increased in the first nine months of fiscal 2025 primarily due to higher net gains on marketable securities resulting from the initial public offerings of certain of our equity investments, partially offset by lower net gains on certain of our non-marketable equity investments.
Current report
(1) In connection with the pending acquisition of Alphawave, we agreed to restrict the use of approximately $2.3 billion of cash to be held for purposes of satisfying payment of the consideration to effect the acquisition. Additional information regarding our pending acquisition of Alphawave is provided in this Quarterly Report in “Notes to Condensed Consolidated Financial Statements, Note 8. Acquisitions.”
Current report
Debt. During the third quarter of fiscal 2025, we repaid $1.4 billion of unsecured fixed-rate notes that matured in May 2025. In May 2025, we also issued $1.5 billion of unsecured fixed-rate notes, consisting of $500 million of 4.50% notes, $400 million of 4.75% notes and $600 million of 5.00% notes (collectively, May 2025 Notes) that mature on May 20, 2030, May 20, 2032 and May 20, 2035, respectively. The net proceeds from the May 2025 Notes will be used for general corporate purposes. We also entered into interest rate swaps which are designated as fair value hedges and allow us to effectively convert all of our fixed-rate payments due under the May 2025 Notes into floating-rate payments. Additional information regarding our debt is provided in this Quarterly Report in “Notes to Condensed Consolidated Financial Statements, Note 2. Composition of Certain Financial Statement Items.”
Removed paragraphs (17)
Previous report
Second Quarter Fiscal 2025 Overview
Previous report
•QTL revenues remained approximately flat in the second quarter of fiscal 2025 compared to the year ago quarter.
Previous report
-$88 million decrease in expenses driven by the revaluation of our deferred compensation obligation
Previous report
Selling, general and administrative expenses remained approximately flat in the second quarter of fiscal 2025 primarily due to:
Previous report
$37 million decrease in expenses driven by the revaluation of our deferred compensation obligation
Previous report
$56 million decrease in expenses driven by the revaluation of our deferred compensation obligation
Previous report
The Organization for Economic Co-operation and Development (OECD) has announced a framework to implement a global minimum tax of 15% (referred to as Pillar Two). Certain countries have implemented or are in the process of implementing the Pillar Two legislation, which applies to us beginning in fiscal 2025. While we do not currently expect this to materially impact our consolidated financial statements, we continue to monitor the impact as countries implement legislation and the OECD provides additional guidance.
Previous report
+higher revenues
Previous report
-lower gross margin percentage, primarily driven by increased product costs, partially offset by increases in average selling prices
Previous report
The increase in QCT revenues in the first six months of fiscal 2025 was primarily due to:
Previous report
QCT EBT as a percentage of revenues increased in the first six months of fiscal 2025 primarily due to:
Previous report
+higher revenues
Previous report
-higher operating expenses, primarily driven by higher selling, general and administrative expenses
Previous report
QTL licensing revenues and EBT remained approximately flat in the second quarter of fiscal 2025.
Previous report
+$37 million in higher royalty revenues recognized related to devices sold in prior periods
Previous report
QTL EBT as a percentage of revenues increased in the first six months of fiscal 2025 primarily due to higher revenues.
Previous report
Second quarter and first six months 2025 vs. 2024
Reworded paragraphs (38)
Previous wording
This Quarterly Report (including but not limited to this section titled Management’s Discussion and Analysis of Financial Condition and Results of Operations) contains forward-looking statements. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “may,” “will,” “would” and similar expressions or variations of such words are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-looking statements in this Quarterly Report. Additionally, statements concerning future matters such as our future business, prospects, results of operations or financial condition; research and development or technology investments; new or enhanced products, services or technologies; emerging industries or business models; design wins or product launches; industry, market or technology trends, dynamics or transitions; our expectations regarding future demand or supply conditions; strategic investments or acquisitions, and the anticipated timing or benefits thereof; legal or regulatory matters, including the expected impacts of pending tax or other regulatory changes; U.S./China trade or national security tensions; vertical integration by our customers; competition; annual effective tax rates; and other statements regarding matters that are not historical are also forward-looking statements.
Current wording
This Quarterly Report (including but not limited to this section titled Management’s Discussion and Analysis of Financial Condition and Results of Operations) contains forward-looking statements. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “may,” “will,” “would” and similar expressions or variations of such words are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-looking statements in this Quarterly Report. Additionally, statements concerning future matters such as our future business, prospects, results of operations or financial condition; research and development or technology investments; new or enhanced products, services or technologies; emerging industries or business models; design wins or product launches; industry, market or technology trends, dynamics or transitions; our expectations regarding future demand or supply conditions; strategic investments or acquisitions, and the anticipated timing or benefits thereof; legal or regulatory matters, including the expected impacts of recently enacted or pending tax or other regulatory changes; U.S./China trade or national security tensions; vertical integration by our customers; competition; annual effective tax rates; and other statements regarding matters that are not historical are also forward-looking statements.
Previous wording
Revenues for the second quarter of fiscal 2025 were $11.0 billion, an increase of 17% compared to the year ago quarter, with net income of $2.8 billion, an increase of 21% compared to the year ago quarter. Key items from the second quarter of fiscal 2025 included:
Current wording
Revenues for the third quarter of fiscal 2025 were $10.4 billion, an increase of 10% compared to the year ago quarter, with net income of $2.7 billion, an increase of 25% compared to the year ago quarter. Key items from the third quarter of fiscal 2025 included:
Previous wording
•QCT revenues increased by 18% in the second quarter of fiscal 2025 compared to the year ago quarter, due to higher handsets, automotive and IoT revenues.
Current wording
•QCT revenues increased by 11% in the third quarter of fiscal 2025 compared to the year ago quarter due to higher handsets, IoT and automotive revenues.
Previous wording
+$39 million increase in estimated sales of 3G/4G/5G-based multimode products
Current wording
•QTL revenues increased by 4% in the third quarter of fiscal 2025 compared to the year ago quarter, primarily due to an increase in estimated sales of 3G/4G/5G-based multimode products.
Previous wording
We are organized on the basis of products and services and have three reportable segments. We conduct business primarily through our QCT (Qualcomm CDMA Technologies) semiconductor business and our QTL (Qualcomm Technology Licensing) licensing business. Our QSI (Qualcomm Strategic Initiatives) reportable segment makes strategic investments. We also have nonreportable segments, including QGOV (Qualcomm Government Technologies) and our cloud computing processing initiative.
Current wording
We are organized on the basis of products and services and have three reportable segments. We conduct business primarily through our QCT (Qualcomm CDMA Technologies) semiconductor business and our QTL (Qualcomm Technology Licensing) licensing business. Our QSI (Qualcomm Strategic Initiatives) reportable segment makes strategic investments. We also have nonreportable segments, including QGOV (Qualcomm Government Technologies) and our Data Center business (formerly referred to as our cloud computing processing initiative).
Previous wording
The increase in revenues in the second quarter of fiscal 2025 was primarily due to:
Current wording
The increase in revenues in the third quarter of fiscal 2025 was primarily due to:
Previous wording
+$3.0 billion in higher equipment and services revenues from our QCT segment
Current wording
+$898 million in higher equipment and services revenues from our QCT segment
Previous wording
The increase in revenues in the first six months of fiscal 2025 was primarily due to:
Current wording
The increase in revenues in the first nine months of fiscal 2025 was primarily due to:
Previous wording
+$1.4 billion in higher equipment and services revenues from our QCT segment
Current wording
+$3.9 billion in higher equipment and services revenues from our QCT segment
Previous wording
+$143 million in licensing revenues resulting from a recent settlement of a licensing dispute, which was not allocated to our segment results
Current wording
+$143 million in licensing revenues resulting from a settlement of a licensing dispute in the second quarter of fiscal 2025, which was not allocated to our segment results
Previous wording
+$76 million in higher licensing revenues from our QTL segment
Current wording
+$121 million in higher licensing revenues from our QTL segment
Previous wording
Gross margin percentage decreased in the first six months of fiscal 2025 primarily due to a decrease in the proportion of total revenues related to QTL licensing revenues (which have a higher margin contribution).
Current wording
Gross margin percentage decreased in the first nine months of fiscal 2025 primarily due to a decrease in the proportion of total revenues related to QTL licensing revenues (which have a higher margin contribution).
Previous wording
The decrease in research and development expenses in the second quarter of fiscal 2025 was primarily due to:
Current wording
The decrease in research and development expenses in the third quarter of fiscal 2025 was primarily due to:
Previous wording
+$81 million increase driven by higher costs related to the development of wireless and integrated circuit technologies (including investments in key growth and diversification opportunities), primarily driven by an increase in employee-related costs, partially offset by higher non-recurring engineering cost reimbursements
Current wording
-$83 million decrease driven by lower costs related to the development of wireless and integrated circuit technologies (including investments in key growth and diversification opportunities), primarily driven by $189 million in higher non-recurring engineering cost reimbursements for product-related development work, partially offset by higher employee-related costs
Previous wording
-$57 million decrease in expenses driven by the revaluation of our deferred compensation obligation (which resulted in a corresponding decrease in net gains on deferred compensation plan assets within investment and other income, net due to the revaluation of the related assets)
Current wording
+$35 million increase in expenses driven by the revaluation of our deferred compensation obligation (which resulted in a corresponding increase in net gains on deferred compensation plan assets within investment and other income, net due to the revaluation of the related assets)
Previous wording
The increase in selling, general and administrative expenses in the first six months of fiscal 2025 was primarily due to:
Current wording
The increase in selling, general and administrative expenses in the third quarter and first nine months of fiscal 2025 was primarily due to an increase in sales and marketing expenses.
Previous wording
Net gains on other investments in the second quarter and first six months of fiscal 2024 was primarily driven by certain of our QSI non-marketable equity investments.
Current wording
Net gains on other investments in the first nine months of fiscal 2024 was primarily driven by certain of our QSI non-marketable equity investments.
Previous wording
We estimate our annual effective income tax rate to be 11% for fiscal 2025, which is lower than the U.S. federal statutory rate. Additional information regarding our annual effective income tax rate and income tax expense is provided in this Quarterly Report in “Notes to Condensed Consolidated Statements, Note 3. Income Taxes.”
Current wording
For the third quarter of fiscal 2025, we estimate our annual effective income tax rate to be 11% for fiscal 2025, which is lower than the U.S. federal statutory rate. Additional information regarding our annual effective income tax rate and income tax expense is provided in this Quarterly Report in “Notes to Condensed Consolidated Statements, Note 3. Income Taxes.”
Previous wording
Discontinued operations in the second quarter and first six months of fiscal 2024 are related to the Non-Arriver businesses. Information regarding the Non-Arriver businesses is provided in this Quarterly Report in “Notes to Condensed Consolidated Financial Statements, Note 2. Composition of Certain Financial Statement Items - Discontinued Operations.”
Current wording
Discontinued operations in the third quarter and first nine months of fiscal 2024 are related to the Non-Arriver businesses. Information regarding the Non-Arriver businesses is provided in this Quarterly Report in “Notes to Condensed Consolidated Financial Statements, Note 2. Composition of Certain Financial Statement Items - Discontinued Operations.”
Previous wording
The following should be read in conjunction with our financial results for the second quarter of fiscal 2025 for each reportable segment included in this Quarterly Report in “Notes to Condensed Consolidated Financial Statements, Note 6. Segment Information.”
Current wording
The following should be read in conjunction with our financial results for the third quarter of fiscal 2025 for each reportable segment included in this Quarterly Report in “Notes to Condensed Consolidated Financial Statements, Note 6. Segment Information.”
Previous wording
Substantially all of QCT’s revenues consist of equipment and services revenues, which were $9.3 billion and $7.9 billion in the second quarter of fiscal 2025 and 2024, respectively, and $19.2 billion and $16.2 billion in the first six months of fiscal 2025 and 2024, respectively. QCT handsets, automotive and IoT revenues mostly relate to sales of our Snapdragon platforms (which include processors and modems), stand-alone Mobile Data Modems, radio frequency transceiver, power management and wireless connectivity integrated chipsets as well as sales of 4G, 5G sub 6 and 5G millimeter wave RFFE products.
Current wording
Substantially all of QCT’s revenues consist of equipment and services revenues, which were $8.8 billion and $7.9 billion in the third quarter of fiscal 2025 and 2024, respectively, and $28.0 billion and $24.1 billion in the first nine months of fiscal 2025 and 2024, respectively. QCT revenues mostly relate to sales of our Snapdragon platforms (which include processors and modems), stand-alone Mobile Data Modems, radio frequency transceiver, power management and wireless connectivity integrated chipsets as well as sales of RFFE products.
Previous wording
The increase in QCT revenues in the second quarter of fiscal 2025 was primarily due to:
Current wording
The increase in QCT revenues in the third quarter of fiscal 2025 was primarily due to:
Previous wording
+higher handsets revenues, primarily due to $854 million in higher revenues per chipset (primarily driven by higher average selling prices), and $783 million in higher chipset shipments driven by certain major OEMs, both of which benefited from an increase in demand in premium-tier Snapdragon platforms
Current wording
+higher handsets revenues, primarily due to $387 million in higher revenues per chipset primarily driven by higher average selling prices and favorable mix toward premium-tier Snapdragon platforms
Previous wording
+higher IoT revenues, primarily due to $410 million in higher shipments primarily across edge networking and industrial products
Current wording
+higher IoT revenues, primarily due to higher shipments primarily across edge networking, industrial and consumer products
Previous wording
QCT EBT as a percentage of revenues increased in the second quarter of fiscal 2025 primarily due to:
Current wording
QCT EBT as a percentage of revenues increased in the third quarter of fiscal 2025 primarily due to higher revenues.
Previous wording
+higher handsets revenues, primarily due to $381 million in higher chipset shipments driven by certain major OEMs, and $368 million in higher revenues per chipset (primarily driven by higher average selling prices), both of which benefited from an increase in demand in premium-tier Snapdragon platforms
Current wording
+higher handsets revenues, primarily due to $1.3 billion in higher revenues per chipset (primarily driven by higher average selling prices) and $810 million in higher chipset shipments by certain major OEMs, both of which benefited from an increase in demand in premium-tier Snapdragon platforms
Previous wording
+higher IoT revenues, due to $924 million in higher shipments across consumer, edge networking and industrial products, partially offset by unfavorable product mix
Current wording
+higher IoT revenues, primarily due to higher shipments across edge networking, consumer and industrial products
Previous wording
Gross margin percentage remained approximately flat in the first six months of fiscal 2025, primarily driven by higher product costs, partially offset by higher average selling prices.
Current wording
Gross margin percentage remained approximately flat in the first nine months of fiscal 2025, primarily driven by higher product costs, partially offset by higher average selling prices.
Previous wording
During the second quarter of fiscal 2025, we executed final agreements for new long-term licenses with two key Chinese OEMs (for which the initial terms had expired). We also recently entered into comprehensive 4G and 5G license agreements with Transsion (a growing, China-headquartered OEM that sells primarily in developing regions). As a result of our agreements with Transsion, all outstanding litigation between the parties has been dismissed. QTL revenues for the second quarter and first six months of fiscal 2025 included estimated royalties due from Transsion for sales made in the March 2025 quarter. We did not record QTL revenues in the second quarter of fiscal 2025 from Huawei, whose license agreement has expired.
Current wording
During the second quarter of fiscal 2025, we executed final agreements for new long-term licenses with two key Chinese OEMs (for which the initial terms had expired) and entered into comprehensive 4G and 5G license agreements with Transsion (a growing, China-headquartered OEM that sells primarily in developing regions). As a result of our agreements with Transsion, all outstanding litigation between the parties has been dismissed. Beginning in the second quarter of fiscal 2025, QTL revenues did not include royalties from Huawei, whose license agreement has expired.
Previous wording
The increase in QTL licensing revenues in the first six months of fiscal 2025 was primarily due to:
Current wording
The increase in QTL licensing revenues in the third quarter and first nine months of fiscal 2025 was primarily due to an increase in estimated sales of 3G/4G/5G-based multimode products.
Previous wording
QSI EBT decreased in the second quarter and first six months of fiscal 2025 primarily due to lower net gains on certain of our equity investments.
Current wording
QSI EBT increased in the third quarter of fiscal 2025 primarily due to higher net gains on marketable securities resulting from the initial public offerings of certain of our equity investments.
Previous wording
•We expect continued intense competition, including from vertical integration by certain of our customers. Specifically, Apple began utilizing its own modem (rather than our products) in its recently released smartphone and we expect that Apple will increasingly use its own modem products, rather than our products, in its future devices, which will have a significant negative impact on our QCT revenues, results of operations and cash flows.
Current wording
•We expect continued intense competition, including from vertical integration by certain of our customers. In particular, Apple began utilizing its own modem (rather than our products) in its recently released smartphone and we expect that Apple will increasingly use its own modem products, rather than our products, in its future devices, which will have a significant negative impact on our QCT revenues, results of operations and cash flows.
Previous wording
Our principal sources of liquidity are our existing cash, cash equivalents and marketable securities, cash generated from operations and cash provided by our debt programs. The following tables present selected financial information related to our liquidity at March 30, 2025 and September 29, 2024 and for the first six months of fiscal 2025 and 2024 (in millions):
Current wording
Our principal sources of liquidity are our existing cash, cash equivalents and marketable securities (including restricted cash), cash generated from operations and cash provided by our debt programs. The following tables present selected financial information related to our liquidity at June 29, 2025 and September 29, 2024 and for the first nine months of fiscal 2025 and 2024 (in millions):
Previous wording
(1) Includes our issued debt reported as long-term and $1.4 billion reported as short-term debt (which matures in May 2025). As of March 30, 2025 and September 29, 2024, our credit facility was undrawn, and we had no commercial paper outstanding.
Current wording
(2) Includes our issued debt reported as long-term and short-term debt. As of June 29, 2025 and September 29, 2024, our credit facility was undrawn, and we had no commercial paper outstanding.
Previous wording
Cash, cash equivalents and marketable securities. The net increase in cash, cash equivalents and marketable securities for the first six months of fiscal 2025 was primarily due to net cash provided by operating activities, partially offset by $3.5 billion in payments to repurchase 22 million shares of our common stock, $1.9 billion in cash dividends paid, $609 million in payments of tax withholdings related to the vesting of share-based awards, $491 million in capital expenditures and $341 million in cash paid for acquisitions and other investments.
Current wording
Cash, cash equivalents and marketable securities (including restricted cash). The net decrease in cash, cash equivalents and marketable securities (including restricted cash) for the first nine months of fiscal 2025 was primarily due to $6.3 billion in payments to repurchase 41 million shares of our common stock, $2.8 billion in cash dividends paid, $1.4 billion repayment of unsecured fixed-rate notes that matured in May 2025, $878 million in payments of tax withholdings related to the vesting of share-based awards, $785 million in capital expenditures and $711 million in cash paid for acquisitions and other investments, partially offset by net cash provided by operating activities and the issuance of $1.5 billion of unsecured fixed-rate notes.
Previous wording
During the first six months of fiscal 2025, income taxes paid were in excess of our provision, negatively impacting net cash provided by operating activities. This was driven primarily by our installment payment for a one-time U.S. repatriation tax accrued in fiscal 2018 of $530 million and the adverse impact of the requirement to capitalize and amortize research and development expenditures for federal income tax purposes.
Current wording
During the first nine months of fiscal 2025, income taxes paid were in excess of our provision, negatively impacting net cash provided by operating activities. This was driven primarily by our installment payment for a one-time U.S. repatriation tax accrued in fiscal 2018 of $530 million and the adverse impact of the requirement to capitalize and amortize research and development expenditures for federal income tax purposes. The OBBB includes significant corporate tax reforms, including the permanent reinstatement of deducting domestic research and development expenditures as incurred beginning in fiscal 2026 (under prior law such expenditures were capitalized and amortized over five years). We expect this change will have a favorable effect on our cash flows from operations due to significantly lower cash tax payments beginning in fiscal 2026.
Previous wording
Net changes in our operating assets and liabilities for the first six months of fiscal 2025 negatively impacted our operating cash flows primarily from a decrease in payroll and other benefit related liabilities primarily driven by payments related to our employee cash incentive program. This was partially offset by a decrease in other assets primarily driven by utilization of prior advanced supply agreement payments.
Current wording
Net changes in our operating assets and liabilities for the first nine months of fiscal 2025 negatively impacted our operating cash flows primarily from a decrease in payroll, benefit and other liabilities, partially offset by a decrease in accounts receivable and other assets. The decrease in payroll, benefits and other liabilities and accounts receivable was primarily due to an increase in the portion of customer incentive amounts recorded as a reduction to accounts receivable. The decrease in other assets was primarily driven by utilization of prior advanced supply agreement payments.
Previous wording
On March 18, 2025, we announced an increase in our quarterly dividend per share of common stock from $0.85 to $0.89, which is effective for dividends payable after March 27, 2025. We currently intend to continue to use cash dividends as a means of returning capital to stockholders, subject to capital availability and our view that cash dividends are in the best interests of our stockholders, among other factors. Additional information regarding our capital returns is provided in this Quarterly Report in “Notes to Condensed Consolidated Financial Statements, Note 4. Capital Stock.”
Current wording
Capital Return Program. Our stock repurchase program is subject to periodic evaluations to determine when and if repurchases are in the best interests of our stockholders, and we may accelerate, suspend, delay or discontinue repurchases at any time. Our stock repurchases in the first nine months of fiscal 2025 have increased compared to the prior year, and we expect our stock repurchases to remain at an increased level compared to the prior year through the remainder of fiscal 2025. We currently intend to continue to use cash dividends as a means of returning capital to stockholders, subject to capital availability and our view that cash dividends are in the best interests of our stockholders, among other factors. Additional information regarding our capital returns is provided in this Quarterly Report in “Notes to Condensed Consolidated Financial Statements, Note 4. Capital Stock.”
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
The increase in research and development expenses in the first nine months of fiscal 2025 was primarily due to a $132 million increase in share-based compensation expense. Our costs related to the development of wireless and integrated circuit technologies (including investments in key growth and diversification opportunities) remained approximately flat, primarily driven by $288 million in higher non-recurring engineering cost reimbursements for product-related development work, partially offset by an increase in employee-related costs.
Current report — wording carried from elsewhere
Gross margin percentage remained approximately flat in the third quarter of fiscal 2025, primarily driven by higher product costs, partially offset by higher average selling prices.
Rearranged previous paragraphs (10)
Previous report — wording carried elsewhere
+$143 million in licensing revenues resulting from a recent settlement of a licensing dispute, which was not allocated to our segment results
Previous report — wording carried elsewhere
Gross margin percentage decreased in the second quarter of fiscal 2025 primarily due to a decrease in QCT gross margin.
Previous report — wording carried elsewhere
+$20 million increase driven by higher costs related to the development of wireless and integrated circuit technologies (including investments in key growth and diversification opportunities), which included higher employee-related costs, offset by higher non-recurring engineering cost reimbursements
Previous report — wording carried elsewhere
The increase in research and development expenses in the first six months of fiscal 2025 was primarily due to:
Previous report — wording carried elsewhere
+$120 million increase in share-based compensation expense
Previous report — wording carried elsewhere
+$48 million increase in sales and marketing expenses
Previous report — wording carried elsewhere
+$94 million increase in sales and marketing expenses
Previous report — wording carried elsewhere
+$29 million increase in share-based compensation expense
Previous report — wording carried elsewhere
+$29 million increase in employee-related expenses
Previous report — wording carried elsewhere
Capital Return Program. Our stock repurchase program is subject to periodic evaluations to determine when and if repurchases are in the best interests of our stockholders, and we may accelerate, suspend, delay or discontinue repurchases at any time.